The Great Depression & Rise of Totalitarianism Chapter 28

End of Prosperity Postwar prosperity turned to depression by end of 20’s Farmers in Africa, Australia, India, New Zealand, NA & SA increased production for Europe American farmers took loans for capital goods 1918 demand for crops and prices dropped – debt crisis

Protectionism Global Economies led to economic nationalism Protectionism: nations tried to protect foreign industries from competition by limiting trade Est tariffs on import of goods – failed policy Americans loaned $$$ to Europeans to purchase American goods

Speculation Market Speculation – stock market investments 1920’s buying on margin – borrow money to purchase stock Value rose – stock sells loans are repaid, value falls – loans aren’t repaid October 29, 1929 – Black Tuesday NYSE panic’s in face of economic downturn – run on the NYSE Bank runs started as investors confidence fell Thousands of banks, farms, factories and individuals forced into bankruptcy

The Great Depression NYSE Crash beginning of the 10 year Depression Prices, wages fell & unemployment soared 1932 30 million unemployed worldwide – poverty amidst productivity Economic nationalism made the depression harder to recover from Great Britain tried giving low interest loans to industry – raised tariffs France stayed away for a few years – when hit led to political instability 1933 alone 3 changes of govt’ Destroyed the Weimar Republic in Germany

Ireland 1800’s Nationalists demand self rule 1914 independence not met – promised self rule post WWI Easter Rising: April 24, 1916 revolt – Irish leaders executed 1918 Sinn Fein – Irish seats in Parliament Declared themselves rep gov’t for Irish Republic Irish Republican Army (IRA) 1922 Settlement – divided Ireland in 2 Catholic Ireland (South) self-governing free state (British Subjects) Protestant Ireland (North) remained in the UK Not all were happy – civil war continued 1949 Irish Free State becomes independent

Fascist Dictatorships Benito Mussolini & Italy Socialist -> Extreme Nationalist during WWI Created the Fascist Party – Nationalistic & Militaristic Relied on dictatorship & totalitarianism – opposed democratic principles 1st Followers Soldiers, Wealthy landowners, Manufacturers & lower middle class Cooperation b/w labor & management to restore the Italian economy Communism Fascim Appealed to the working class Upper & Middle Class Society w/o Social Classes Preserve current class system Communal Property Private Property

Mussolini’s Rise to Power Black Shirts’ removal of Socialists Broke up strikes, intimidated voters & drove elected officials from office October 1922 Black Shirts meet in Rome Purpose: Defend Italy from Communism Reaction: Parliament (Liberals) ask for Martial Law – Cabinet resigns Resolution: Mussolini becomes Premier & heads a coalition gov’t In Office: Dictatorship in process Appointed Fascists in the central gov’t Election Law: Party w/most votes = 2/3 of seats in lower house

Mussolini’s Gov’t 1925 “Head of Gov’t” Dictatorship has arrived! Controlled Ministry of War Controlled Gov’t policy through Grand Council of Fascist Party Dictatorship has arrived! Opposition parties disbanded No Basic Freedoms: press, speech & trial by jury Gov’t controlled labor unions Strikes illegal Italy becomes a police state

Corporatism Italy becomes a Corporatist State Representation based on area of economic activity Major areas: agriculture, commerce, manufacturing & transportation Rep’s of gov’t met with labor & management to set wages, prices & working conditions Unions & Business leaders expected to work with Mussolini’s gov’t & each other for the state

Weimar Republic 1920 German Constitution drafted German Federal Republic – Weimar Republic Traitor’s to German interest (Treaty of Versailles) Faced unemployment & hyperinflation Gave up control of major industrial lands Reparations = Hyperinflation 1922 – 50,000 Reichmarks (Marks) : 1 U.S. Dollar 1923 – 1,000,000,000,000 : $1 1924 – 4,200,000,000,000 : $1 Rentemark’s were created at the end of 1923 4.2 Rentemark’s were = $1 Beer Hall Putsch 1923 attempt to overthrow the republic – Hitler Led

Nazi Party & Hitler Nazi – National Socialist German Worker’s Party Nationalistic, anti-Semitic & Anti-communist Hitler head of Party 1921 1927 Anti-Semitic ideology transformed into active discrimination Promised to repeal the Treaty of Versailles Restore Germany’s military power Buiild a “Greater Germany” Believed Germans were racially superior (Aryans) Blamed Jews for Germany’s problems Threatened the purity of the Aryan race Hitler eliminated political opponents via political skills and violence

Nazis in Power

Hitler in Power January 1933 Hitler appointed Chancellor Third Reich Used private Nazi army to strong arm members of Reichstag Der Fuhrer – The Leader Turned Germany into a police state (no unions, opposition parties or papers) Gestapo used to profile “inferior races” Third Reich Third “Empire” of Germany 1930’s secretly rebuilt military 1936 moved troops to the Rhineland – violated ToV 1936 Rome-Berlin Axis: Alliance w/Mussolini

Russia Under Lenin 1917 Russia taken by Communists 1922 Russia -> Union of Soviet Socialist Republics USSR divided into 15 separate political republics in a federal union 1918-1921 Vladamir Lenin is the leader (Russian Civil War b/w Whites & Reds) Lenin’s War Communism Nationalized Industry – keep food and weapons stocked Didn’t work – production was down since WWI Collapse & Social disorder started

War Communism

New Economic Policy War Communism Failed – NEP new approach Gov’t controlled: Heavy industry, communication, transportation & the credit system NEP married the Public and Private Sectors (Free Enterprise) Buy, sell & trade farm products Small business among peasants was permitted Nepmen: Soviet middlemen – traded domestic goods & materials w/manufacturers Agriculture Changes to collectivization Revolution – Wealthy farmland given to peasants Collective farms created: pooled land where people worked in groups Shared machinery